Nigeria’s tax base rises 35% to 17m

… as Kaduna, Sokoto lead on new tax payers
David Ibemere
Nigeria’s plan to grow its taxpayers base has recorded a 35 percent increase in both corporate and individual to 17 million, up from the previous 14 million taxpayers, as government targets N6.747 trillion from tax in 2018.
The highest new registered tax payers came from Kano, 921,000 out of the four million increase recorded since 2016.
Tunde Fowler, executive chairman, Federal Inland Revenue Services (FIRS), who disclosed this while speaking with journalist weekend, said the government had no plans yet to extend Voluntary Assets and Income Declaration Scheme (VAIDS), ending March 31, calling on individuals, corporate organisations to regularise their tax status or face the law.
With a tax to GDP ratio of only 6 percent, Fowler said, “The country cannot develop unless everyone sees tax as a compulsory duty.
“I was at the United Nations, and experts came up with a formula warning that if a country’s tax to GDP ratio is below 15 percent it is unlikely that they can expect economic development in that country or any infrastructure. In 2016, Nigeria was about 16 percent; we are still working on the 2017 Nigerian figures.
“If Nigerians want to feel the impact of the government they must begin to see themselves as part of the process of development and pay their taxes. Nigeria has no business being under 15 percent.”
According to Fowler, VAIDS is not only for the wealthy but for every individuals and organisations that have defaulted in their tax payment.
“Every economically active individual must have a tax clearance. We are consolidating a database that will ensure everyone gets to know their tax payment records, and every individual, companies must remit. Our consultants are currently designing a VAT forms certificate that will display every business; no one can be exempted from the tax payment system. As far there is need to spend money, we will evaluate them and tax them on that,” he said.